One oft-overlooked bit of wisdom is his statement "...I just used my available funds to reinvest in some of the stocks I already own." If something is good enough to hold, then it makes sense to buy more when it is on sale. (I added to COP yesterday.)

Bed Bath And Beyond Has A Compelling Opportunity Here And Now [View article]

Do you think that it is possible that for products like kitchen ware and linens, people still like to browse is a real store? Maybe it's just me, but I doubt it. I can see that online retailers may have an advantage for infrequently-purchased, big-ticket items like home electronic products, but for the more mundane houseware products, many of which might be bought on impulse or bought to meet an immediate need, I can't help but think that bricks-and-mortar stores may have an advantage over online retailers. I would like to read your thoughts on this possibility. Thanks, and thanks for an informative article.

"There is quite clearly much more capacity in the market right now than there is people who want mortgages.”

I doubt that. More likely, housing prices have firmed up, wages have stayed low, and nominally American corporations are hoarding cash rather than hiring, so there are more people who want to buy a house than there are people who can afford to buy a house.

However well one knows a company, the insiders know it better - that's why they're called "insiders". While this may not be a red light, it sure as heck is a yellow one. (I don't own BAC and don't intend to buy any.)

Foreign companies don't necessarily have the same quarterly dividend payment structure that US-based companies do. The dividends can to up and down, or not be paid for one or more quarters. Since Anheuser-Busch InBev is based in Belgium, they are in that boat.

As others have said, this is an excellent article explaining the nature of this business. I stumbled across is yesterday while reading Value Line, and it looked like the best value of several in the industry. Great job explaining the value of its non-capital intensive nature and its scalability.

Do you see them expanding overseas going forward? I would think that their scalable business model would make this opportunity possible.

You note that the big banks undertook "self-imposed Mid-Cycle Stress tests". "Self-imposed" implies that they designed the criteria, does it not? That fact that "All the banks passed with flying colors" could mean nothing more than they set a very low bar for themselves to jump over, did so, and declared victory. Whoopee.

In 2008, the banks' size in and of itself would not have been a problem if they were not up to their ears in trash paper. The problem was that they were drowning in trash that they could not back up. If the federal government had not stepped in, most, including BAC, would have failed. Period. Since then, they have been showing their gratitude by fighting any sort of rational regulation. We can only pray that if they are again standing on the precipice, we do not throw them a lifeline, but rather let them live or die on their own merits, or lack thereof.

3 Reasons It's Time To Take Profits In Bank Of America Shares [View article]

The comment "BofA is still facing significant litigation risks" makes me recall why I was always too chicken (or risk-averse) to invest in tobacco stocks. One difference, of course, is that tobacco stocks were more attractive because at least they tend to pay fat dividends.